The government has increased the rice import target in the first half of 2016 to 1.8 million metric tons, from an initial plan of 1.5 million tons, to ensure adequate supply of the staple, following the prolonged El Niño dry spell and the devastation of typhoon Lando.
Economic Planning Secretary and National Economic and Development Authority director general Arsenio Balisacan said the agency proposed the importation of an additional 300,000 metric tons of rice, on top of the original proposal of 1 million MT and the already approved orders for 500,000 MT.
“Our recent assessment is that would probably have to be 1.3 million metric tons but that’s not final. We asked the Department of Agriculture. They will also re-asses the numbers so we have to compare notes when they have done their homework. But obviously we will need more for the second quarter,” he said.
Balisacan said the agency presented to President Benigno Aquino III the draft for P19.2-billion El Niño roadmap which was revised due to typhoon Lando.
He said the initial budget proposal could get “slightly higher” because the country’s rice bowl was “severely hit.”
“There is a need to ensure supply adequacy and to intensify local community efforts in areas that are highly vulnerable and exposed to adverse impacts of a prolonged dry spell,” he said in a separate statement.
The National Food Authority has the discretion on rice importation, but Balisacan said the plan should also be approved by Aquino, given the huge volume involved.
The Finance department earlier said the Philippines should import more rice to cover losses in the production of the staple food due to damage inflicted by typhoon Lando in Northern and Central Luzon.
Finance Undersecretary and chief economist Gil Beltran said more rice imports were needed to avoid a sharp increase in the domestic price of the commodity.
“The country may have to import more rice to replace these losses in domestic production and avoid triggering an inflationary spiral,” Beltran said in an economic bulletin.